New Report: Amcor PLC (AMCR)

Amcor PLC, known by the ticker symbol AMCR,  is a large-cap packaging and containers company, operating in the consumer cyclical business sector. This is my first report on Amcor for this Viital portfolio. I have reviewed it for some of my previous six portfolios, most recently in July 2021.

Amcor is a global plastics packaging behemoth, with global sales of USD 12.5 billion in fiscal 2021 following the acquisition of Bemis in 2019. The company sells its products primarily through its direct sales force. Amcor plc was incorporated in 2018 and is headquartered in Zurich, Switzerland.

Amcor’s operations span over 40 countries globally and include significant emerging-market exposure equating to about 20% of sales. Amcor’s capabilities span flexible and rigid plastic packaging, which sell into defensive food, beverage, healthcare, household, and personal-care end markets.

Three key data points gauge any dividend equity or fund such as Amcor PLC (AMCR):

(1) Price (2) Dividends (3) Returns.

Those three basic keys best tell whether any company has made, is making, and will make money. 

AMCR Price

Amcor's price per share was $11.67 as of Friday's market close. One year ago its price was $11.30. Therefore, Amcor's share price rose $0.37 or about 3.2% in the past year. 

If AMCR's stock trades in the range of $10.00 to $13.00 this next year, its recent $11.67 share price might rise by $0.83 to reach $12.50 by March 21, 2023. My $0.83 estimate is $0.13 under the median of 1yr target prices estimates from 8 analysts covering AMCR for brokers.

AMCR Dividends

Amcor's most recently declared quarterly dividend of $0.12 per share was paid March 15th, to shareholders on record as of February 22nd.  The AMCR annual dividend payout per share of 0.48 yields 4.11% per share at yesterday's $11.67 closing price. 

AMCR has paid the same $0.12 payouts since October, 2019. That stretch will mark 3 years in October. Nevertheless AMCR is an S&P 500 Aristocrat credited with increasing dividends over 25 years.

AMCR Returns

Adding the $0.48 AMCR past year dividend to the estimated one-year price upside of $0.83 shows a $1.31 potential gross gain, per share, to be reduced by any costs to trade AMCR shares.  

At yesterday's $11.67 price per share, a little over $1000 would buy 86 shares. A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.12 per share. Subtract that maybe $0.12 brokerage cost from my estimated $1.31 gross gain estimate per share results in a net gain of $1.19 X 86 shares = $102.34 for a 10.2% net gain on a $1,003.62 investment.

So it is that Amcor PLC (AMCR) shows a possible 10.2% net gain including an 4.11% past year dividend yield. 

Over the next year at this time our $1000 investment in Amcor PLC (AMCR) could generate $41.10 in cash dividends alone. Note that a single share of AMCR stock bought at yesterday's single share price of $11.67 is more than 3.5 times under the dividend income from our $1000.00 invested. So, by my dogcatcher ideal, now IS the time to buy Amcor PLC (AMCR) shares. The estimated next-year dividend from $1K invested is 3.522 times greater than yesterday's single share price. Consider yourself alerted. It's a sign!  

All of the estimates above are speculation based on the past history of Amcor PLC (AMCR). Only time and money invested in this stock will determine its market value.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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